| In the mid1990s, city commercial banks were formed under china’s peculiarhistorical conditions by central financial authorities to recify urban credit cooperativesand mitigate local financial risks. After more than10years of development, citycommercial banks have gradually developed, assets scale is getting stronger day byday and have already become a dynamic force of our country’s commercial banksystem. But in the next process of development, city commercial banks have toproperly handle the contradiction between the high-speed scale dilation, high-speedbusiness growth and maintain high management efficiency, namely the problem ofscale economies. Under the situation of increasingly fierce market competition, thehomogenization of financial products and the rapid development of informationtechnology, problem of scale economies has already become a strategic question ofreducing operating cost, improve service level and enhance core competitive power.In view of the fact, research in this proposition is of both theoretical and practicalsignificance.This thesis takes our country’s largest economy——the Yangtze River Delta as anexample, theoretically analyses the scale economies of its city commercial banks, andestablishes three kinds of translog cost function models based on the intermediary method, thedual method and the modern method respectively to conduct an empirical study of the data of12city commercial banks in the Yangtze River Delta from2005-2010. The conclusion is that:city commercial banks in the Yangtze River Delta overall present scale economies effect, butthe effect declined in recent2years. Among them, the large city commercial banks during thesample period have remarkable scale economies effect, while medium or small citycommercial banks are in invariant state of scale economies. The main reason is the small andmedium-sized city commercial banks have worse loan quality and corporate governance thanthe large city commercial banks. |
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